Turkish Airlines is aiming to grow by at least 15 percent a year for the foreseeable future despite the global downturn affecting many of the world's airlines, according to its chief executive.
-- Turkish Airlines aims to grow at least 15 percent a year
-- Plans to finalise 2010-2014 plane orders this year
"As a rule of thumb, we want to grow by at least 15 percent a year," CEO Temel Kotil told Reuters, referring to passenger numbers and revenue per kilometre, expected to be up 18 percent and 22 percent respectively in 2008.
He added the airline, 49 percent owned by the Turkish government, will finalise plans to buy aircraft for the period 2010-2014 later this year, and aims to grow its 122-strong feet by 10 percent annually.
"We are preparing a five-year plan from 2010," he said, adding planes due at the end of this year would cover expansion plans for 2009. Kotil said pressures facing airlines such as soaring fuel costs were a concern, but added he had decided against a hedging policy in favour of cost cutting.
"It doesn't look good for hedging - prices are rising, that's obvious, but who knows where it will stop? Fixing less-efficient activities is more important than crying over fuel," he said.
Turkish Airlines - a new member of the Star Alliance airline group - flies to destinations out of Istanbul. It carried 4.5 million passengers in the first quarter of this year, up 15 percent on 2007.
Kotil said April had delivered a similar performance and that the Turkish tourist season had started promisingly with many hotels fully booked.
He was speaking after meeting investors in London to present the group's first-quarter results. He declined to comment on whether the government would look to sell more of its stake, saying a decision had yet to be made. Turkish Airlines reported 2007 net profit of 292 million lira in April, up 63 percent on the previous year.